Catalina_

bump

I am partners in a small corporation. RMS is trying to collect on a debt (due in Aug '11) we owe. Now that the corporation has money, I do not mind paying the debt - to the original creditor - but I think it is too late for that. So I am trying to figure out if I should pay RMS. Will it help our corp. credit report? I know business credit reports are very different from personal and I am sure we have gotten dinged on the corporation's report for this. RMS said they would state on our credit report that the debt was paid. But does that help? Does RMS collect for their clients or do they buy bad debt and collect for themselves? If it is not going to the original creditor I really don't want to give RMS any money. They have offered a payoff of about a 30% reduction of what is owed. Thanks for any input you can offer. Cat

Kingair, Thanks. Good info so far. I thought it was difficult to get derogs removed. If that is not the case then, great! I thought about posting this to the business credit forum but that is more focused on creating credit rather than dealing with collections and derogs. I can post there, but then I would be double posting. Cat

I am partners in a small corporation. RMS is trying to collect on a debt we owe. Now that the corporation has money, I do not mind paying the debt - to the original creditor - but I think it is too late for that. So I am trying to figure out if I should pay RMS. Will it help our corp. credit report? I know business credit reports are very different from personal and I am sure we have goten dinged on the corporation's report for this. RMS said they would state on our credit report that the debt was paid. Does RMS collect for their clients or do they buy bad debt and collect for themselves? If it is not going to the original creditor I really don't want to give RMS any money. They have offered a payoff of about a 30% reduction of what is owed. Thanks for any input you can offer. Cat

A 623 and a DV are two completely separate approaches. The end result? That is way to vague to answer. I'm not sure what you're looking for. Sometimes a CA goes away with a DV, sometimes with a 623, sometimes with well-written letters to regulatory agencies, and sometimes with a suit. Each situation is different. Somewhere in this thread is a link to several disucssions on what letter to send : http://creditboards.com/forums/index.php?showtopic=425508 If they don't respond, then they are in violation of the FCRA, if you have written a proper 623, see links above. Writing your state's AG can be effective if done properly, see links above. Thanks Jen. That is helpful. I will do more research. Cat

The 623 method only applies to the Original Creditor (OC). For a debt collector, you should go the Debt Validation (DV) path. Be sure to use CMRRR on all your correspondence to the Collection Agency (CA). THIS IS NOT TRUE! The 623 dispute is for ANY entity reporting to your report as a DATA FURNISHER. What is the difference as far as effect, or end result, between a validation letter and a 623 letter to a CA if they do not respond and continue reporting? Isn't the next step to take them to small claims in both cases? Is writing your state's AG effective? Thx Catalina

I don't understand. Why not take them to small claims? Why not sue them for unfair business practices? The amount of the claim can be whatever you deem you have been damaged by having this on your report, at least $1000. The CA would have to go to your small claims court AND they would have to provide evidence that you owed the debt. The chances they will or can do either are infinitesimal. What you want is for them to concede prior to the court date and remove the derogatory. I have an acquaintance who has a credit repair service and he did this for his client very often and they always conceded. Does anyone take this approach?

I was on vacation and had no internet access to keep this post alive so I am reprinting this question. Cap 1, with their immaculate records, is a formidable foe. But their weakness is their short SOL. Read on... Cap 1's contract states that the laws Virginia govern the agreement, not the laws of the state the customer resides in. So if this is the case VA's SOL for "unwritten" contracts is 3 three years. So I have a strong defense against their efforts to sue me, but ONLY if I can argue that the contract is unwritten. VA's code states a written contract is "signed by the party to be charged thereby, or by his agent". I have not been able to find the actual definition of written and unwritten contract in their code, only spots where they are both mentioned. Since it is the party arguing SOL that must prove it, I want to have that very important definition. I do not believe Cap 1 has the actual contract signed by me, but they included a copy of the unsigned contract in their summons. Does anyone know where I can find VA's definition of unwritten account, or maybe a revolving credit definition would help. I do not think they use the term "open" account. Catalina

Cap 1's contract states that the laws Virginia govern the agreement, not the laws of the state the customer resides in. So if this is the case VA's SOL for "unwritten" contracts is 3 three years. So I have a strong defense against their efforts to sue me, but ONLY if I can argue that the contract is unwritten. VA's code states a written contract is "signed by the party to be charged thereby, or by his agent". I have not been able to find the actual definition of written and unwritten contract in their code, only spots where they are both mentioned. Since it is party arguing SOL that must prove it, I want to have that very important definition. I do not believe Cap 1 has the actual contract signed by me, but they included a copy of the unsigned contract in their summons. Does anyone know where I can find VA's definition of unwritten account, or maybe a revolving credit definition would help. I do not think they use the term "open" account. Thanks, Catalina

Yes Collins135, I, too, want to hear your argument on the missed 30 day window. (You knew we'd ask!) Catalina

<bump>

The CA does NOT have to validate after the 30-day window? Then is there a purpose of validating after the 30-day window? After the 30-days is it best to use other methods, like looking at how they have violated the laws? (I have done so much reading here, I tho't I had this down. Guess I'll read some more!) Catalina

I am unclear about what to do if I have missed the 30-day window after being notified that a CA is now trying to collect. I didn’t know any better so I did nothing. I got notified about 9 months ago. If the account is still in the SOL, can I still send a DV letter? What happens in this case. (I feel bad asking, but I did a lot of reading CB and didn't find answer. My eyes are tired. ) Thanks to all who respond! Catalina